India-Middle East Europe Economic Corridor (IMEC)
Source: The Hindu
GS II: International Relation
Overview
- News in Brief
- India-Middle East Europe Economic Corridor (IMEC)
- Partnership for Global Infrastructure Investment (PGII)
Why in the News?
The conflict in Israel and Palestine will not dampen plans for the India-Middle East Europe Economic Corridor (IMEC), noting that the strife didn’t figure significantly in parleys held with G20 FMs in Marrakech, Morocco.
News in Brief
- However, violence has brought concerns about fuel and food security to the fore again
- While higher for longer interest rates can impact investment flows in emerging markets.
- These economies are the growth engines of the world.
- So investment flows should not be influenced by high interest rates alone.
India-Middle East Europe Economic Corridor (IMEC)
- The India-Middle East Europe Corridor (IMEC) is a network of transport corridors.
- It comprises railway lines and sea lanes to promote economic integration between Asia, the Arabian Gulf, and Europe.
- The project will involve transit by
- Ship between India and Saudi Arabia
- Rail link to the UAE
- Jordan from where the shipment will move by sea to Turkey
- Further by rail.
- The proposed corridor will comprise of two separate corridors
- Eastern corridor: Connect India to the Arabian Gulf
- Northern corridor: Northern Corridor will connect the Arabian Gulf to Europe
- The IMEC was launched at the recently concluded G20 Summit 2023 in India.
- Memorandum of Understanding (MoU) was signed between the Governments of India, the US, Saudi Arabia, the European Union (EU), the UAE, France, Germany and Italy to establish this economic Corridor.
- The project is part of the Partnership for Global Infrastructure Investment (PGII).
- Its is a collaborative effort by G7 nations.
- It aims to fund infrastructure projects in developing nations.
- PGII is part of G7’s vision of a Build-Back-Better framework.
- What is the significance?
- The significance of IMEC lies in its geo-political and geo-economic significance.
- It is an ambitious counter to China’s Belt and Road Initiative (BRI) project
- It also provides an opportunity to counter China’s growing geopolitical influence in the Middle East region.
- The corridor will help bring countries in the Middle East together.
- It will establish that region as a hub for economic activity instead of a region of challenge, conflict or crisis.
Partnership for Global Infrastructure Investment (PGII)
- The Partnership for Global Infrastructure Investment (PGII) is a collaborative effort by the Group of Seven (G7) nations.
- Aims to fund infrastructure projects in developing countries through public and private investments.
- The PGII is seen as a counter to China’s Belt and Road Initiative (BRI).
- The G7 aims to mobilize up to $600 billion by 2027 to invest in critical infrastructure that improves lives and delivers real gains for all of our people.
- The PGII is based on the trust principles of the Blue Dot Network.
- It is a multi-stakeholder initiative that promotes quality infrastructure investment.
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